The ambitious pivot set off waves of layoffs. In July 2013, just a month after its $1 billion valuation, the company cut more than 100 jobs. October of that same year, 100 additional employees were let go and dozens more lost their jobs the following month.

After the layoffs, executives fled: the company lost its chief people officer, chief operating officer, and chief financial officer in quick succession. The biggest blow, however, was co-founder and chief design officer Bradford Shelhammer's decision to quit the company he helped start in November of last year.

Despite these setbacks, Goldberg has passionately come to his company's defense, often taking to his blog to discuss the layoffs and restructuring. “No doubt we had lost perspective at Fab. We had started to dream in billions when we should have been focused on making one day simply better than the one before it," he wrote in January.

This April, he published a post titled "It's a f-cking startup. Why are you here?," which acknowledged the company's precarious situation. "Are we out of the woods yet? No," he wrote. "Do we know how to get there? Sorta. We're still figuring it out," adding "we're fighting for our lives."

Fab recently launched an exclusive line of furniture and opened a showroom in SoHo. "Realigning our team is part of a broader business plan, which we began implementing last fall and which will continue to unfold in weeks ahead," the company said in a statement. "We have every confidence in our path ahead."